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Monthly Business Review
OF
THE
FEDERAL RESERVE BANK
OF DALLAS
•
(Compiled September 15,1936)
Volume 21, No.8
Dallas, Texas, October 1, 1936
Thl8 copy 18 relea8cd for pub·
Iicatlon in morning papers-
Oct. 1
DISTRICT SUMMARY
lematical. Livestock ranges are greening and should provide
fair to good fall and winter pasturage.
THE SITUATION AT A GLANCE
Eleventh Federal Rellerve DI8triot
Augu s t
19J6
gank debita to Individual accounts (at 18 cltle8) . $708,804,000
Repartment store 811le8... _.. _.................................. _..
eseI've bank loan8 to member banks at end of
th ............ .................................... _.. _............... _. $
729,120
Co
ng permit valuation at larger centers ......... $ 4,661,117
Commerc!al failures (number) ............... _................
20
OIj"'Derclal fallure8 (liabilltle8) .............................. $
270,000
prodUction (barreI8) ........................... _................ 41,117,060
B:;Ndi
Change from
July
6.40/0
9.0%
+
$844,190
16.9%
$
8
+$207,000
2.2%
+
------------------------------------------------A generally active demand for merchandise at retail and
wholesale was in evidence in this district during August.
~h.e dollar volume of department store sales in principal
Chlhes re~ected an expansion of 9 per c.ent as compared with
t e prevIous month, and recorded a gam of 18 per cent over
the sall1e month lust year. The increase from July to August
\rus larger than th e average and this bank's adj usted index
of department store sales rose to 107.2 per cent of 1923-25
average, the highest figure reached since early in 1930. The
Combined sales of reporting wholesale firms in five lines of
hade were 18 per cent higher than in July, and 18 per cent
~reutel' than in August, 1935. Debits to individual accounts
at banks in larger centers declined 6 per cent in August as
compared with the preViOtlS month, but they were 9 per
Cent larger than in August last year.
Offsetting to some extent the favorable trade situation
Was the sharp deterioration in the condition of ranges and
growing crops which followed in the wake of the drought
and intense heat prevailing over most of the district dUl"ing
August. According to the September 1 report of the Departlllent of Agriculture, the prospective yields of some crops
Were materially reduced. Of major importance was the
reduction of 871,000 bales in the indicated production of
~?n in this district between August 1 and September 1.
lIe the moderate to excessive rains which fell late in
~ugust and the first half of September have relieved the
. rought in most areas and will be beneficial to late maturIng crops, the effect upon the cotton crop is still prob-
The loans of reporting member banks in leading cities
reflected a further seasonal expansion during the four-week
period ended September 9, and on that date amounted to
$211,695,000. This figure was $19,193,000 higher than the
mid-summer low figure on July 15, and $32,083,000 higher
than on the corresponding date a year ago. Practically all
of the expansion during the eight weeks occurred in "all
other" loans which incl udes loans for agricultural, com·
mercial, and industrial purposes, as the increase in loans
on securities amounted to only $1,069,000. During the ei ghtweek period these banks reduced their investments $7,534,·
000. Federal Reserve Bank loans to member banks continued
in relatively small volume, the total on September 15 being
$523,000 as compared with $597,000 on August 15, and
$643,000 on the corresponding date last year. The fifty per
cent increase in member banks' reserve requirements, which
became effective August 15, necessitated only a very moderate amount of borrowing from the Federal Reserve Bank
of Dallas and its branches. Only seven member banks used
reserve bank credit to adjust their position to the new reo
quirements, and the aggregate amount so used was approximately $100,000. A comparison of the reserve position of the
district's member banks immediately before and immediately
after the higher requirements went into effect indicates that
the higher requirements were followed by a net decrease of
only twenty-five per cent in the aggregate amount of excess
reserves carried by the member banks.
The volume of constl'llCtion work increased somewhat in
August and continued at a relatively high level. The valuation of building permits issued at principal cities was 17
per cent greater than in July, and exceeded by 3 per cent
the large total of August, 1935. The total for the eight
months of the current year was about double that in the
corresponding period last year, and was the largest for any
similar period since 1930.
BUSINESS
'lPholesale
Trade
The volume of business handled during
August by reporting firms in the five lines
of wholesale trade investigated by this
bank reflected a substantial increase over both the previous
month and the corresponding month last year. While the in·
creases in sales from July to August in most lines were
smaller than the average changes at this season, due in part
to the heavier purchases earlier in the season, business was
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
maintained at a relatively high level. Inventories at wholesale establishments at the close of August were moderately
larger than a month earlier and substantially greater than
those a year ago_ Collections showed little change from July
to August_
Coincident with the opening of the fall marketing season,
the demand for dry goods at wholesale reflected a noticeable expansion_ Sales of reporting firms were 56.0 per cent
larger than in July and exceeded those of August last year
by 23.8 per cent. The increased volume of business was well
distributed over the district. Collections during August were
in about the same volume as in July.
The sales of reporting wholesale grocery firms evidenced
a further expansion of 1.8 per cent as compared with July,
and were 12.4 per cent larger than in August last year.
While the gain from July to August was less than usual at
this season, there was a substantial non-seasonal gain in
July. Wholesalers increased their stocks 8.1 per cent during August, and at the close of the month inventories were
13.1 per cent higher than a year ago .
While the trend of the wholesale hardware business continued upward during the past month, business was somewhat spotty. Sales of reporting firms were 3.0 per cent
higher than in July, and exceeded the volume of August,
1935, by 19.6 per cent. August collections were in approximately the same volume as in the previous month.
Following the decline in July, the wholesale farm implement business showed a large increase in August. Sales were
78.2 per cent larger than in the previous month, and evidenced a gain of 4.6.5 per cent over the same month last
year. The gain over a year ago is more impressive by reason of the fact that business was very active in August,
1935.
The distribution of drugs at wholesale showed an expansion of 2.2 per cent from July to August, and was 7.6 per
cent larger than a year ago. While the comparison with a
year ago was much less favorable than in other months of
the current year, it was due in large part to the fact that
the insecLicide business was very small in August this year
and was very heavy in that month of 1935. Late reports indio
cate that business in the first half of September was very
active.
CONDITION OF WHOLESALE TRADE DURING AUGUST, 1986
Pel'centage of increase or decrease InNet S.le.
July I to dot e
Ne t Sa ies
to nccDuntS
Aug. 3 1, 19 36
:md notes
com pared wi lh
compared with
•• me peri od Aug. 3 1, July 3 1, outstnnding
on July 3 1
l.st year
19l5
1936
Aug., 19 36
comp:tred wi th
August
19 35
Groceries ............ +12.4
Dry goods ............ +28.8
Farm implements +46.5
Hardware ............ +19.6
Drugs .................. .. +7.6
Ratio of
collections
during AuguSI
Stock.
Ju ly
1936
+ 1.8
+56.0
+78.2
+ 3.0
+2 .2
+ 12.4
+26.2
+84.6
+28.2
+18.7
+18 .1 + 8.1
+ 9.0 + 1.2
+ 7.1 - 2.7
+ 8.9 + 8.6
+26.6 + 2.6
81.8
86.6
6.9
47.8
61.5
Retail distribution ih the principal cities
of this district broadened considerably
during the past month. The sales of reporting department stores registered a gain of 9.0 per cent
as compared with the previous month, and were 18.2 per
cent higher than in the corresponding month of 1935.
August this year had one less business day than the same
month last year. The adjusted index of department store
sales, which makes allowances for average seasonal change.s,
increased from 101.6 per cent of the 1923-25 average 11l
July to 107.2 per cent in August. The index figure for
August, 1935, was 88.3 per cent. Sales thus far this year
averaged 17.3 per cent greater than those for the cor re ·
sponding period last year.
Retail
Trade
Reflecting the purchases of fall merchandise, stocks on
hand at department stores on August 31 were 15.5 per cent
larger th~m a month earlier. Inventories were also 9.4, per
cent higher than a year ago. The rate of stock turnover duro
ing the first eight months of 1936 was 2.19, as compared
with 1.99 in the same period of 1935.
Collections reflected a seasonal decline in August. The
ratio of August collections to regular accounts outstanding
on August 1 was 36.9 per cent, as compared with 40.8 per
cent in July, and 35.7 per cent in August last year. There
was also a decline in collections on installment accounts.
--------------------------------------------------------------------------------------------------BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
August, 1986, compared with August. 1935.................................................................................. .
August, 1936, compared with July, 1936....................................................................................... ..
January 1 to August 31, 1986, compared with same period last year.................................... .
Credit sales (percentage) :
August, 1986, compared with August, 1936.. ............................................................................... .
August, 1936, compared with July, 1986....................................................................................... _
January '1 to August 31, 1986, compared with same period last yenr.................................... .
Stocks on hand at end of month (percentage) :
August, 1986, compared with August. 1986 .................................................................................. .
August, 1986, compared with July, 1986....................................................................................... ..
Stock turnover (rate) :
Rate of stock turnover in August, 1985 ......................................................................................... .
Rate of stock turnover in August, 1986 ..........................................................................................
Rate of stock turnover January 1, to August 81. 1986............................................................ ..
Rate of stock turnover January 1. to August 81, 1986.............................................................. .
Rate of August collections to open accounts receivable and outstanding August 1, 1986...... .
Ratio of August collections to installment accounts receivable nnd outstanding
August 1, 1986...................................................................................................................................... .
Indexes of department store sales:
Unadjust ed-July, 1986 .................................................................................................................... ..
Unadjusted-August, 1936............................................................................................................... ..
Adjusted-July. 1986 ......................................................................................................................... .
Adjusted-August, 1986 .....................................................................................................................
Indexes of department store stocks:
Unadjusted-July, 1986 ..................................................................................................................... .
¥if;:~1~"0;~!t~:]~·;.;~.~:::.:.:::.:::::.: .: : : .:.:.:.:.:.:.:.:.: : .::::.:::.: .: .:.: .: .:.:.: .: : :.:.: .: : .:.:.: .:.: .: .: .:.: .:.: :.:.:.:.: .:.:.:.:.:.:.:.:.:.:.:.: .:.: .:.:.:.:.:.:.:.:.:.:.:
Dan ..
Fort Worth
Houston
San Antonio
Others
+ 21.2
+ 14.1
+ 19.1
+ 14.8
+
.3
+ 20.4
+ 14.1
6.8
+
+ 12.8
+ 22.5
+ 10.8
+ 20.1
+ 16.2
6.9
+
+ 14.8
+ 17.9
+ 19.9
+ 19.2
-
+ 11.6
1.8
+ 18.8
19.1
11.7
+ 16.9
20.2
14.0
+ 20.1
+ 18.4
+ 16.8
+ 12.7
+ 15.7
+ 17.7
+
+
+ 8.2
+ 20.2
8.7
+
+ 14.8
t
6.6
9.5
+ +
6.1
18.7
Total 01.'1.
+
+
18.2
9.0
+ 17.8
+ 17.0
14.8
+
+ 17.8
+
+
9. 4
15.6
.26
.80
2.20
2.48
40.5
.19
.21
1.65
1.88
38.5
.24
.26
1.99
2.19
86.9
14.0
.23
.24
1.88
2.12
89 .8
14.6
18.6
.28
.29
2.28
2.42
88.1
.22
.28
1.72
2.00
81. 8
15.0
9.9
76.0
85.0
113.4
118.1
79.4
79.1
105.9
111.4
71.7
74.7
102.4
108.3
66.0
72.1
97 .1
101.5
71. 1
77 .2
101.6
107. 2
52:2
62.6
66:1
60.t
62.2
68.2
67 .6
66.9
86.6
42 .6
41.1
41.7
44.6
48 .1
61.8
48 .6
64.0
6t.9
69.8
60.7
--------------------------------------------------------------------~-----------------------------
MONTHLY BUSINESS REVIEW
Commercial
Commercial failul"es in the Eleventh FedFailures
era 1 Reserve District, after declining to
.
a low level in July, showed a substantial
1I1crease in August. Dun & Bradstreet, Incorporated, reported
that there were 20 failures in August with liabilities of
8
$270,000, as compared with 12 defaults in July with an
indebtedness of $63,000. However, the August figures were
much more favorable than those in the corresponding month
of 1935 when 36 insolvencies occurred having total liabilities of $1,070,000.
AGRICULTURE
Weather conditions during August were
unfavorable to growing crops over the
major portion of the Eleventh District.
The dry weather and extremely high temperatures caused a
decline in the prospective production of some crops with
the most marked deterioration occurring in the condition
of farm pastures, late feed crops, and cotton. The Department of Agriculture reported that the indicated yield per
acre of 33 important crops combined, September 1, 1936
(expressed as a percentage of the 1921-30 average yield)
w~s as follows for states wholly or partially attached to
tillS district: Texas-92; Louisiana-1l9; Oklahoma-48;
New Mexico-99; and Arizona-1l4.. While the figures for
all the above states reflect a decline from those a month
earlier, the most marked deterioration occurred in Texas
a.nd Oklahoma where declines of 20 and 15 points, respectIvely, occurred. Since late in August, light to heavy rains
have fallen in practically all sections of the district, but
more rain is needed in the drier areas. The improved moisture situation will be beneficial to late maturing crops and
farm pastures, and will facilitate the seeding of small grains.
Crop Conditions
)
l
I
1
~
I
/
The condition of the cotton crop in this district reflected
a. marked decline during August, and the indicated production on September 1 was considerably smaller than the
A.ug ust 1 forecast. The drought and hot weather caused
ll1uch shedding and premature opening. The production for
the Eleventh District, as compiled by the Board of Governors of the Federal Reserve System, from estimates by states
as of September 1, by the Department of Agriculture, was
placed at 3,697,000 bales as compared with an estimate of
~. ,568,000 bales on August 1, and an actual production of
3,569,000 bales in 1935. The Texas crop was forecast by
the Department of Agriculture at 3,036,000 bales on September 1, as compared with 3,850,000 bales on August 1,
~nd an actual outturn of 2,956,000 bales last year. The
~dicated per acre yield was reduced from 155 pounds on
. ugust 1 to 123 pounds on September 1. The latter figure
IS 10 pounds lower than the actual yield in 1935 and 16
l~otJnds below the ten-year average yield. While the condition of the crop declined in all districts of the State, it was
1110st pronounced in the northern half. In Oklahoma, the
2~ per cent condition on September 1 indicated a per acre
1eld of only 50 pounds and a total production of 239,000
ales. Actual production in 1935 amounted to 567,000
?ales. Despite the decline in the condition of the crop durII1g A.ugust in Louisiana, New Mexico, and Arizona, the
~eptember 1. forecast indicated a better than average yield
bor these states. Ginnings prior to September 1, as reported
y the Bureau of Census, were as follows: Arizona-4.,913
bales; Louisiana-181,092 bales; Oklahoma-14.,54.l bales;
and Texas-4,60,168 bales.
ment of Agriculture placed the crop in Texas at 33,820,000
bushels on September 1, as compared with a forecast of
4.9,840,000 bushels on August 1, and a harvest of 60,075,000
bushels in 1935. Substantial reductions as compared with
a month ago were also forecast for New Mexico and Oklahoma. The Texas corn crop on September 1 was forecast at
66,061,000 bushels, and the indicated yield per acre was
15.5 bushels. This was 2,131,000 bushels lower than the
August 1 estimate. In 1935, there was a per acre yield of
19.5 bushels and a total production of 89,368,000 bushels.
Moderate declines during August were also reported for
Louisiana, Oklahoma, and New Mexico. While prospects for
hay crops on September 1 were less favorable than a month
earlier, the estimated production is larger than the 1935
harvest.
The Department of Agriculture estimated the production
of rice in Texas at 10,764.,000 bushels on Septemher 1, as
compared with 10,557,000 bushels on August 1 and an
output of 8,84D,000 bushels in 1935. The Texas sweet potato
crop was forecast at 4.,575,000 bushels on September 1,
which compares with a harvest ' of 6,300,000 bushels last
year. The initial estimate for production of peanuts (for
nuts) in Texas was 94,,050,000 pounds, as compared with
a harvest of 109,250,000 pounds in 1935 on a smaller acreage. The crop in Louisiana and Oklahoma was forecast at
8,000,000 pounds and 17,280,000 pounds, respectively. The
pecan crop in Texas and Oklahoma is exceedingly poor this
year. The forecast is for a crop of 9,000,000 pounds in
Texas and 1,000,000 pounds in Oklahoma, whereas the combined production of these two states in 1935 was 69,000,000
pounds. The Louisiana forecast of 4,,600,000 pounds is
slightly larger than last year's harvest.
b
The unusually high temperatures and
the lack of moisture in most areas of this
district during the first three weeks of August were very
detrimental to ranges, and caused a decline in the condition of livestock. The most serious effects were in the northern half of Texas, southeastern Arizona, and portions of
eastcrn and southwestern New Mexico where poor to only
fair feed supplies were available. In other sections, matured
range grass and other feed supplies were generally ample.
Since late in August light to heavy rains have fallen in
most sections of the range territory, which have relieved
the shortage of stock water and started a new growth of
range vegetation. More rain, however, is needed in the northcentral area of Texas and in the drier portions of New
Mexico and Arizona. Despite the effects of the intense heat
and dry weather, livestock remained in fair to good condition and should mend rapidly with an improvement in
range conditions .
. Prospects for grain sorghums on September 1 were conSIderably less favorable than II month earlier. The Depart.
The Department of Agriculture reported that range conditions in Texas declined ten points during August. The
Livestock
MONTHLY BUSINESS REVIEW
4
September 1 condition of cattle ranges was 75 per cent of
normal, which was 5 points lower than a year ago and 2
points below the ten-year average. While the condition of
sheep and goat ranges was 4 points lower than on the same
date last year, it was 1 point higher than the ten-year average. There was a decline of 6 points in the condition of
cattle, and the 82 per cent rating on September 1 was 2
points lower than a year earlier. The condition of sheep
declined from 85 per cent on August 1 to 81 per cent on
September 1, and the latter figure compares with 86 per
cent on the same date last year. Goats declined 3 points
during August and on September 1 the condition figure
was 2 points lower than a year earlier.
Substantially increased supplies of cattle
and calves arrived at the Fort Worth
market during August. Receipts, however,
were considerably smaller than in the corresponding month
of 1935. The supply of hogs was in about the same volume
as in July, but was noticeably below that a year ago. The
receipts of sheep reflected a large increase over the previous
month and the same month last year.
Movements
and Prices
The market for most classes of cattle during the past
month was generally steady to slightly higher. Prices for
the best quality of hogs reached a top of $11.20 during the
third week in August, but the advance was cancelled before
the end of the month. At the middle of September the best
offerings were bringing $10.40, which was $0.35 lower
than the price obtaining on August 15. Sheep and lamb
prices reflected a gradual decline during August, but part
of the loss was regained during the first half of September.
FORT WORTH LIVESTOCK RECEIPTS
(Number)
Change over
July
August
August
1936
Cattle........................
Calves.......................
Hogs.........................
Sheep ........................
1935
yenr
1936
48,267
82,890
18,004
72,860
79,886
86,060
22,432
45,592
- 81,069
- 8,670
- 4,428
+27,268
42,496
21,191
18,104
87,121
Chonge over
month
+ 5,771
+11,199
_
100
+85,789
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)
August
1936
Beef steers......................................··.·..... ·..................... $ 8.00
Stocker steers................................................................ 6.50
Heifers and yearlings.................................................. 8.10
Butcher cow . .......................................·.................... ····· 5.00
Calves.............................................................................. 6.10
Hogs ..............................,.................................................. 11.20
Sheep............................................................................... 5.25
Lambs............................................................................. 8.75
JulY
August
19l5
1936
$10.50
7.25
9.50
5.00
7.25
11.85
4.26
8.00
$ 7.7G
7.0 0
9.00
5.10
7.25
10.40
6.00
9.00
FINANCE
Operations 0/
the Federal Reserve Banlc
Member bank borrowings at the Federal
Reserve Bank, which amounted to $385,000 on July 31, increased gradually during August, reaching a peak of $74.7,000
on August 24. Subsequent liquidation brought these borrowings down to $523,000 on September 15, as compared
with borrowings of $643,000 on the corresponding date in
1935. The increased borrowings during August were due in
part to a seasonal demand for credit and in part to the
increase of 50 per cent in the reserve requirements of member banks, which became effective at the close of business on
August 15. The increase in reserve requirements, however,
had a very negligible immediate effect on the use of this
bank's rediscount facilities, as it appears that only seven of
the 553 member banks in the district found it necessary to
borrow from the Federal Reserve Bank for the purpose of
meeting the higher reserve requirements, their aggregate
borrowings for this purpose being estimated to amount to
only $100,000. During the period from August 1 to August
15, inclusive, the actual reserves maintained by member
banks at the Federal Reserve Bank averaged $135,344,000
as compared with average required reserves of $61,923,000.
In the subsequent sixteen-day period, actual reserves averaged $149,549,000, as compared with average required
reserves of $94,390,000. Between the two periods, there
was an increase of $32,4,67,000 in average required reserves, an increase of $14,205,000 in average reserves
CONDITION OF THE FEDERAL RESERVE BANK
{In thousands of dollars}
Sept. IS,
1936
Sept. IS,
1935
Aug. IS,
1936
Total cash reserves ............................................... $169,222 $111,375
$168,905
Discounts for member banks ............................. .
623
643
697
Other bllis discounted.......................................... .
None
None
Norie
Industrial advances ...............................................
1,642
1,826
1,560
Commitments to make Industrial advances .....
608
428
636
Bills bought in the open market........................
87
122
87
United States Government securities owned ..
98,670
76,475
98,670
All other investment8................._ ... _ ............~ .. .
8
.. None
None '
Total earning assets..............................................
96,730
79,066
96,814
Member bank reserve deposits ...........................
146,181
108,702
144,110
Federal Reserve notes In actual circulation ..:. .. 88;641 .. -60,843' .... · 84,628 ..
carried, and a decrease of $18,262,000 (approximately 25
pel' cent) in estimated excess reserves. Federal Reserve notes
in actual circulation, after remaining generally steady at
about $85,000,000 during the last half of August, reflected
a seasonal expansion during the subsequent two weeks and
stood at $88,M1,000 on September 15. On the corresponding date in 1935, the circulation of these notes amounted
to $60,843,000;
The seasonal demand for credit in this
district was reflected in a further expansion in the loans of reporting member
banks in leading cities during the four
weeks ended September 9. Total loans
of these banks at the end of the period amounted to $211,
695,000, which was $8,094,000 greater than four weeks
earlier, and $32,083,000 in excess of those on the con' e'
sponding date in 1935. Loans on securities rose $1,4.58,000
between August 12 and September 9, and "all other" loans
(agricultural, commercial, and ipdustrial loans) reflecled
an expansion of $6,636,000_ As compared with a year ago,
there was an increase of $2,749,000 in the former classification and $29,334,000 in the latter classification . The
investments of these banks in the direct obligations of the
United States were reduced $8,411,000 between August 12
and September 9, but this reduction was partially offset by
an increa~e of $4,,960,000 in the holdings of fully guaranteed obligations_ The combined holdings of these securities
on September 9 were $15,927,000 greater than a year ago.
Investments in other securities declined $677,000 during
the four weeks, but holdings on September 9 exceeded those
on the corresponding date last year by $5,74.5,000. The de·
mand deposits-adjusted of these banks amounted to $362,573,000 011 September 9, which represents a gain of $1,01l,000 during the foUl' weeks and $4.5,066,000 over those on
Septemper 11, 1935. Time deposits, while slightly higher
than on August 12, were $1,089,000 lower than a year a~o.
Between August' 12_and September 9, ' interbank deposllS
Condition of
M ember Banks
in Leading
Cities.
5
MONTHLY BUSINESS REVIEW
rose $5,610,000, but their balances with other banks were
reduced $2,695,000. The reserve deposits of these hanks
with the Federal Reserve Bank totaled $95,84.5,000 on September 9, which was $7,097,000 greater than on August 12,
and $28,588,000 higher than a year ago.
There was a further increase during the
past month in the volume of outstanding
bankers' acceptances executed by accepting banks in this district. The total on August 31 amounted
to $651,384, as compared with $600,116 on July 31, and
$653,466 on the corresponding date in 1935. The increase
during the month occurred in acceptances based on the
domestic shipment and storage of goods.
Acceptance
Market
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
~nlte~ States securities (owned) ......................
eSurltles fully guaranteed by United
Ali tates Government (owned) ...........................
( other stocks, bonds, and securities
~f&~i1~~~~~~~:~;~~ ~ ~:~ ~: : : : : ~: :~: :~:~: : : : : :~ :~
I
•
l
f
Sept. 9,
1936
$181,503
Sept. 11,
1935
$157,489
AUK. 12,
1936
$189,914
36,328
44,410
81,868
47,992
44,340
167,855
211,695
862,578
120,359
37,040
186,426
177,286
95,845
42,247
41,591
188,021
179,612
817,507
121,448
18,785
188,482
145,782
67,257
48,669
42,882
160,719
208,601
861,562
120,155
87,174
180,816
179,981
88,748
TTmand deposits-adjusted· ...............................
U n,te deposl ts ..........................................................
I ~lted States Government deposits..................
an lerbank deposits.................................................
II.a ances with domestic banks ............................
ai~el'Ve with Federal Reserve Bank .................
II.s payable and rediscounts with Federal
eserve Bank......................................................
None
None
None
I
·Demand deposits other than Interbank and United States Government,
ess cash Items reported as on hand or In process of coUeetion.
Deposits of
Member Banks
The demand deposits-adjusted of member
banks in the Eleventh District rose $35,270,000 between March 4 and June 30,
1936. The increase at reserve city banks amounted to $26,29,000 and that at country banks totaled $8,541,000. DurI~g the same period there was an increase of $4,035,000 in
h.me deposits, representing a gain of $1,681,000 at reserve
cIty banks and $2,354.,000 at country banks.
7
DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
Reser,e City Dank.
Combined Total
Country Dank. (2)
Demand
Demand
Demand
CaU dates:
deposits
Time
depo,it,
Time
deposits
Tim.
J
adjusted (I) Doposlts adjusted (I) Depositl adjusted (I) Deposito
une ao 1938 (3) . $879,662 $189,868 $176,729 $114,801 $202,988 $75,562
25,' 1988 .......... 405,974
189,949
181,897
108,788
224,077
81,216
30, 198a....... .... 444,205
190,000
194,914
107,497
249,291
82,508
J nr. 5, 1934 ....... ... 489,524
198,799
216,647
108,256
272,877
85,548
o 80, 1934 ......... 495,520 197,280 232,911 111,854 262,609 85,426
DC 17,1984.. ........ 542,021
195,992
246,436
109,410
295,585
86,582
~ec. 81, 1984 .......... 551,276
196,066
242,422
112,117
808,854
88,949
Jar. 4, 1985 .... ........ 672,576
195,056
259,082
111,861
813,544
88,195
une 29, 1985.......... 583,644
N
195,210
276,556
118,421
807,088
81,789
Dov. I, 1985 .......... 628,988
194,362
294,456
111,873
834,532
82,989
~ec. 81, 1985........... 642,167
198,495
292,629
111,851
849,538
86,644
Juar• 4, 1986 ........... 662,216
196,626
800,624
109,285
861,592
87,341
ne 30, 1986.......... 697,486
200,661
827,858
110,966
870,188
89,695
(I) Demand deposits obher than Interbank and United States Government,
less cash Items In process of collection and, prior to December 31,
1985, less cash items reported on hand hut not In process of collection.
(2) Outlying banks In reserve cities which have been authorized to carry
country bunk reserves are included with country banks.
(8) Beginning June, 1938, figure. relate to licensed bnnks only.
gct.
'ltr'
ute
A general decline in the volume of
debits to individual accounts at banks in
eighteen reporting centers in the Eleventh
District occurred during the past month.
The volume for August aggregated $708,804,,000, which represents a recession of 6.4 per cent as
compared with July, but a gain of 8.6 per cent as compared with the same month last year,
Debits to
Individual
Accounts
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousand. of dollars)
August
1936
$ 6,969
22,701
20,099
2,847
201,240
21,789
71,864
22,460
175.492
7,701
2,548
59,914
40,148
6,198
8,861
14,099
12,257
12,627
August Pctg. change
19l5
over year
July Pctg. change
1936 o,er month
$ 6,207
$ 7,466
- 6.7
Abilene ........................... .
+88.8
25,024
- 9.8
Austin............................ .
28.695
- 4. 2
27,208
-26.1
21,683
- 7.3
Beaumont.......................
2,250
Corsicana ...................... ..
2,818
+ 1.0
178,407
~n 218,477 - 7.9
Dalla&. ........................... ..
18,488
17.9
28,221
- 6.2
EI Paso ........................... .
64,505
10.6
80,016
-10.8
Fort Worth ....................
20,586
24,860
- 9.7
Gl1lveston ........................
9.1
167,782
180,601
- 2.8
Houston ......................... .
4.6
6,264
+22.9
8,066
- 4.5
Port Arthur ................. ..
2,887
2,708
- 5.9
RoswelL ........................ .
6.7
64,241
62,818
- 8.9
- 6.7
San Antonio.................. .
28,745
40,588
- 1.1
+89.7
Shreveport..................... .
5,688
6,812
- 1.9
8.9
Texarkana· ................... .
6,869
9,954
- 16.0
+21.7
Tucson ........................... ..
10,460
+34.8
15,254
- 7.6
Tyler ............................. ..
11,185
12,737
- 3. 8
9.6
Waco ............................. ..
18,742
- 8.1
14,908
- 15.3
Wichita Falls ............... ..
$652,654
$757,001
=-ii:4
8.6
Total.......... .. ~
.Includes the figures of two banks In Texarkana, Arkansas, located In
the Eighth District,
f
+
+
+
+
+
+
Reports from 124 banks in this district
which operate savings departments show
that savings deposits on August 31 totaled
$157,066,500. This figure was 004, per cent higher than on
July 31, and 2.9 per cent larger than on August 31, 1935.
The number of savings depositors in 112 of these banks
was 341,692 on August 31, as compared with 339,379 a
month earlier, and 327,644 a year ago.
Savings
Deposits
------------------------------------------------------------------------------------------------------------SAVINGS DEPOSITS
August 31, 1916
Number
of re- Number of
porting
savings
banks
8
9·
2
depositors
9,100
80,512
13,149
36,625
17,891
68,800
5,886
19,982
28,684
July 31, 1936
August 31, 1935
Amount of
Number of
Amount of
Percent.ge chanae
Number of
Amount of
savlngs
savIngs
lavings
over year In
lavinga
savings
Percentnge change
over month in
deposits
dep09\tOfl
deposits
s.vlngs deposit.
depositors
deposits
savings deposi ts
Beatunont. .. .... .................................... ..
$ 8,598,465
9,082
$ 8,628,488
-.8
8,948
$ 8,555,707
Dalla.
26,072,849
76,906
25,641,516
+ 1.7
80,116
25,881,620
.9
6,888,097
11,660
6,714,585
i20.4
18,041
6,782,869
1.5
a
12,281,868
34,982
11,192,909
9.8
86,118
12,188,454
.4
4
10,768,059
16,978
10,875,893
3.8
17,889
10,693,044
.7
11·
80,010,910
66,862
82,029,889
- 6.3
68,054
30,155,757
.5
2
2,814,688
5,871
2,118,698
+ 9.5
5,210
2,287,605
1.2
6·
18,072,221
17,794
16,428,872
+10.0
19,628
17,866,517
1.2
10,979,861
22.282
10,614,287
+ 8.4
28,608
10,887,156
3
+ 1.8
3
9,54 8
5.449.669
9.852
6,288,471
-18.8
9.529
5,481,846
.6
8
6,486
8,440,864
6,096
8,144,691
+ 9.4
6,462
8,427,077
.4
76.
51,586
27,249,969
49,780
25,458,602
...±..:!:..1
51,881
27,817,712
.2
TotaL... .. .........................
124" 841,692 $167,066,500 827,644 $152,611,801
+ 2.9
389.,879
$156,424,868
~
·Only 8 banks In Dalll1s, 10 III Houston, 5 In Sun Antonio, and 66 bunks In ":All others" reported the number of savlnll's depositors.
I!~I;:! I:~I !I
+1.1
+
+
+
+
+
+
+
-------------------------------------------------------------------~~~--------------------~----~-------------
MONTHLY BUSINESS REVIEW
6
DISCOUNT RATES CHARGED BY MEMBER BANKS DURING SEPTEMBER
Prevailing Rates
DaU ns
Rate charged customers on prime commercial paper such as Is now eligible for
rediscount under the Federal Reserve Act......................................................................
Rate charged on loans to other banks secured by bills r eceivable................................
Rate on loans secured by prime stock exchange or other current collateral (nob
including loans placed in other markets through correspondent banks) :
Demand ..............................................................................................................................
Time ............................................... _...................................................................................
Rate charged on commodity paper sccured by warehouse r eceipts. etc ...._...................
Rate on cattle loans....................................... _...............................................................................
El P.so
2-8
Fort Worth
Ph-6
5-8
4-5
4
4-8
2- 8
7- 8
4- 6
6-8
6-8
6-8
5-8
5
4- 10
4-10
5-8
5- 10
Houston
San Antonio
4- 7
41h-6
8-7
3-7
8-7
6-7
5-8
5-8
7-8
2-7
7- 10
Waco
6
G
6-8
6-8
8-7
8
-
INDUSTRY
Reflecting the movement of the 1936 cotton crop, the August receipts of cottonseed at cottonseed oil mills reflected a
sharp increase over the previous month, and were materially
larger than in the same month last year. The volume of cottonseed crushed at Texas mills was about the same as in
August, 1935. At all United States mills the crushing of
seed and the production of products were on a smaller
scale than a year ago. Supplies of crude oil on hand at
United States mills increased during the month and on
August 31 were larger than a year earlier. Stocks of cake
and meal, hulls, and linters at the end of the month were
smaller than on July 31, and were sharply lower than on
the same date in 1935.
Cottonseed
Products
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Tex.s
United State.
August 1 to August 31
This stason Last senBon
Cottonseed received at
mills (tons) .......................
81.280
Cottonseed crushed (tons) .
43.224
Cottonseed on hand
Aug. 81 (tons) ..................
45.487
Crude 011 produced (lbs.) ... 12,406,942
Cake and meal produced
(tons) .................................
20.586
Hulls produced (tons) ........
10.929
Linters produced
(running bales) .............. .
8.499
Stocks on hand Aug. 81:
Crude 011 (pounds) ..............
4.886.174
Cake and meal (tons) .........
8.656
Hulls (tons) ..........................
10.268
Linters (running bales) ....
12.995
Source: Bureau of Census.
August 1 to August 31
This season
Last seaSon
68.686
48.141
252. 834
102.451
201.921
148.885
47.907
168.145
29.768.952
148.111
. 48.122.688
46.774
27.615
64.597
88.278
22.109
28.470
15.289.516
45.561
24.872
87,100
12.157.289
177.489
71.037
61.219
Cotton
Movements
The receipts of cotton at the ports of
Houston and Galveston showed a notice·
able pickup in August as the marketing
of the 1936 crop got well under way, but the movement of
cotton to these concentration points was considerably
smaller than in August, 1935. While exports from these
ports reflected a .further decline from those in the previoUS
month , they were larger than in the corresponding month
last year. Stocks of cotton at these ports on August 31 were
smaller than those a month earlier.
The exports of cotton from all United States ports i~'
creased from 156,262 bales in July to 182,4,87 bales )n
August, but the lattei' figure was 24,,4, per cent smaller than
in the corresponding month of 1935 and was the lowest for
any August since 1920. While August exports of cotton to
the United Kingdom exceeded those of a year ago by a
substantial margin, shipments to Japan, Germany, Italy, and
France reflected a noticeable decline.
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)
Augus t
Receipts.................................
Exports................................ ..
Stocks. August 81.. ............ .
Au gust
19 36
1935
86.818
46.717
81.414
18.828
Au gust 1 to August 31
This sen son
Last season
86, 818
46.717
852.291
COTTON-GALVESTON S'fOCK STATEMENT
(Bales)
August 31,
1936
Textile
Milling
While the domestic consumption of cotton declined from 603,203 bales in July
to 574,289 bales in August, it remained
at a relatively high level. The August figure was 4,0.6 per
cent larger than that for the same month last year, .and
with the exception of 1933, was higher than for any August
in recent years. Mill purchases of raw cotton were on a
smaller scale than consumption with the result that stocks
on hand at the end of August were 16.2 per cent lower
than on July 31, but they were 16.0 per cent higher than
a year earlier.
.
Au gust
Au gust
August 1 to August 31
1936
1935
Thl. se. son L.st season
842.899
480.546
842.899
580.818
4.800.101
408.825
For Great Britain..................................................................... ..
800
400
For Frnnce .~ ...... _
................................_
.........................................
For other foreign pOl·tS............................................................ .
8,400
For coastwise ports ....................................................................
2.000
In compresses and depots ......................................................... 846.191
TotaL .......................................................................... .. 352.291
August 31,
1935
200
90 0
2.90 0
500
~
287.24 4
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
Augus t
Receipts ...........................................
Exports .......................................... ..
Stocks. AUlI'ust 81..........................
Au gust
i9 36
1935
48,859
47.808
86.4 88
48 ,924
Au gust I to August 31 0
This sen son
Lost se.so
86.488
48.924
168.284
48.8850~
47.
811.92 2
SEASON'S RECEIPTS. EXPORTS, AND STOCKS OF OOTTON AT AI-IUNITED. STATES PORTS
(Bales)
COTTON CONSUMED AND ON HAND
(Bales)
Cotton-growing states:
Cotton consumed.............................. 480.546
Cotton on hand Aug. 81 inConsuming establishments.........
Public storage and compresses..
United States:
Cotton consumed..............................
574.289
Cotton on hand Aug. 81 inConsuming establishments......._
Public storage and compresses..
Source: Bureau of Census.
81.48~~
18.
287.2 44
481.854
5.765.393
574.289
408.825
752.219
4.886.724
648.583
5.895 .412
August 1 to August 31
This SC3s on
Last SCISO"
886.507
Recelpts... _............................................................................. ..
Exports:
61.159
United Kingdom ............................................................... ..
29.968
France.................................................................................. .
10.922
Italy., .................................................................................... .
18.216
Germany .............................................................................. .
25.819
Other Europe..................................................................... ..
24.215
Japanc.................................................................................. .
12.188
All other countries..................................................... _.... .
182.487
Total exporta ............................................................................
Stocks held at all United States P01:tS. Aug. 81.. .......... .. 1,814,099
422.969
41,4~~
84.0
22.9~~
28,2
48.66 8
67.2 20
~
241. 484
1,224,46 4
7
MONTHLY BUSINESS REVIEW
SPOT COTTON PRICES
Mlddllnlr Basi.
(Cents per pound)
August, 1936
HIgh
Low
12.89
11.70
12.71
11 .68
12.84
11.27
12.64
11.66
12.61
11.69
Sept. IS,
1936
12.40
12.38
11.86
12.29
12.86
A general expansion in the production
of crude oil in the Eleventh Federal Reserve District occurred during August. The output for the
month totaled 4.1,117,050 barrels, as compared with 4,0,230,250 barrels in July, and 33,904,000 barrels in August,
1935. The daily average production of 1,326,356 barrels
eXceeded that in July by 28,606 barrels, and was 232,679
barrels higher than in the corresponding month last year.
he . rate of drilling act!vity sh.owed no material change.
unng the five· week penod endmg August 29, 1,382 wells
were completed, which included 1,061 oil producers having
an initial flow of 1,631,834, barrels. There were 1,060 wells
completed during the four weeks ended July 25, of which
795 Were successful with an initial flow of ] ,321,527 barrels.
Petroleum
'6
The daily average production from Texas fields amounted
Lo 1,166,564, barrels in August, as compared with 1,14,2,OIL PRODUCTION
(Barrels)
August, 1936
Total
Dally Avg.
3,807,360
122,818
+
6,417.260
207.008
+
492,242
15,269,600
+
2,677,950
86,885
+
268,111
8.001,460
+
86.163,500
1,166. 564
+
2,416,850
77,947
+
2,537,200
81,845
+
1,826,866
41,117,060
+
Increase or decrease
over July,
Total
58,000
65,060
296,000
68,600
262,450
740,100
122,200
24,600
886,800
1936
Dally Avg.
+ 1,871
+ 2.098
+ 9,649
+ 1,890
+ 8,466
+28,874
+ 3,942
+
790
+ 28,606
690 barrels in July, and 1,014,092 barrels in August, 1935.
While all fields participated in the gains over the previous
month, the largest increases occurred in the Texas Coastal
and east Texas fields. Production in north Louisiana and
New Mexico reflected a further expansion over the previous
month and was materially higher than a year ago.
ORUDE OIL PRICES
(Price per barrel)
Sept. II ,
Sept. 13,
1936
19J5
Texas Coastal (84 gravity and above) ..................................
$1. 22
$1.12
North Texas (40 gravity and above) .....................................
1.08
1.08
North Louisiana (40 gravity and above) .............................
1.10
1.08
(011 statistics complied by The 011 Weekly, Houston, Texas)
The production of Portland cement at
Texas mills during August amounted to
581,000 barrels, which was 29.4 per cent larger than in July
and 122.6 per cent greater than that in the same month of
1935. August shipments of 509,000 barrels exceeded those
in the previous month by 2.6 per cent, and were 43.8 per
cent higher than a year ago. Production and shipments during the first eight months of the year averaged 50.2 per cent
and 55.2 per cent, respectively, greater than those in the
corresponding period of 1935. While stocks on hand at the
mills at the close of August were 14.0 per cent above those
on July 31, they were 8.4 per cent lower than a year earlier.
Cement
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT
(In thousands of barrels)
Percentage
change from
August
Augu, t
July
1936
1936
19J5
Production at 'fexu8 mill s ....... 68 1
+1 22.6
+29.4
Shipment8 from T exas mills ... 509
+ 48.8
+ 2.6
Stocks at end of month at
Texas mills.............................. 687
+14.0
8.4
Source: United States Bureau of Mines.
January 1
through
Perce ntage
Aug. 31,
1936
8,757
3,913
change
over yen r
+ 50. 2
+ 55 .2
AUGUST DRILLING RESULTS
Initial
Production
87,486
207,190
1,096,522
106,824
82,400
1,479,872
97,602
54,360
1,681,884
1,821,527
N
CompletIon. Producert Ca. Well. Fallurel
worth Texa....... ...............
278
166
12
106
E e\t Texas.......................
211
161
6
46
Texas ........................
S a\h
361
826
1
26
OU Texas......................
T
810
240
14
66
exas CoastaL................
119
86
6
29
N Tot~l Texas..................
1,264
967
S7
260
exico
N~~h Lo .................... .
57
55
l'
2
•
uisiana..............
61
89
"
8
.~Ugust totals, District
1,382
1,061
6i'
270
July totals, District..... 1,060
795
28
237
• August figures r epresent five weeks ended August 29, 1986.
"July figures r epresent four weeks ended July 26, 1986.
Building
The estimated value of building permits
issued in fourteen cities in the Eleventh
District amounted to $4,,661,117 during August. This total
was 16.9 per cent greater than that in the previous month,
and 2.8 per cent above the large volume of August, 1935.
Permits issued at these cities during the first eight months
of 1936 had a valuation of $4,0,905,678, which was slightly
more than double the value of permits issued during the
corresponding period of the previous year.
BUILDING PERMITS
. AllIarll10
g~~:~~i::;:::;:::::::::::::::
ball
I
"
(
rlstl ..............
~~~W~~:~:·· . : · · :·. ·:· ·. .·:·. . · ··
.
Galveston h ....................
f~~t~tii:;:.: .:.:.: : .: .:. ..: :·.: .
Shr
ntonlo ..................
~~~=~;::fi~:.: : : :.: : : : .
-
August, 1936
Valuation
No .
29 $ 69,141
186
275,887
121
86,320
187
818,572
484,079
479
46,074
66
172
815,585
67,166
106
400
1,007,748
86,140
177
288
517,868
372,578
122
46.616
37
17,848
82
TotaL ......... 2,387
$4,661,117
-Increase over one thousand per cent.
August, 19l!
No.
Valu.tlon
88 $ 28,868
251,234
186
98,247
92
88,040
48
316,188
409
32
48,681
146
545,080
48,84 3
122
765,880
298
189,482
78
2,004,447
261
188,413
124
88
40.616
85,826
28
1,880 $4,688,888
Pclg. change
valuation
over year
+196.0
+ 9.8
- 61.0
+
•
58.1
5.4
+ 49.6
+ 87 .5
+ 81.7
- 54.5
- 74.2
+169 .2
+ 14.8
- 60.2
-
+
2.8
July, 1936
Volu. tlon
No.
88,092
28
249,546
179
76,189
182
162,572
157
516
422,9RO
77
101,886
227
761,696
124
576,871
408
867,170
111,825
187
248
310,242
182
206,575
90,428
85
18
25,185
2,468 $8,985,656
January I through August 31
1936
19J5
No.
V.luatlon
No.
Valu. tlon
288
451,918
282 $ 184,588
1,811
8,121,824
1.286
8,907,808
929
802,786
901
886.036
87 2
1,912,069
488
357,090
4.057
7,767,760
3,193
2.358.815
508
649,248
850
899,06 2
1,812
6,589,140
925
2,147,6 80
1,176,791
866
857
476,842
2,996
12,440,451
2,048
4,845,746
668,878
1,068
590
446,1 84
1,980
3,088,460
5.241
3,857,160
1,545,029
976
1,058
850,049
291
468,148
227
849,308
288,181
222
151
256,792
17,545 $40,905,678 17,608 $20,822,490
Pctg. change
valuation
over month
+108.9
+ 10.6
- 52.8
+408. 6
+ 14.4
- 54.6
+ 7.1
- 88. 4
+ 17.5
- 28.0
+ 66.8
+ 80 .4
- 48.4
- 29.2
--,-+ 16.9
Pets. eh.nso
valuation
over period
+ 144.9
- 20.1
108 0
.
435.5
+ 229. 8
- 27. 8
+ 204. 6
+ 147.0
+ 186. 8
+ 48.8
8.2
+ 81.8
+ 84 .0
+ 10.8
t
-
+101.8
MONTHLY BUSINESS REVIEW
8
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Complied by the Board of Governors of the Federal Reserve System
Industrial activity increased seasonally in August and
there was a substantial increase in factory employment and
payrolls. Commodity prices, which had advanced for three
months, showed little change after the middle of August.
PRODUCTION AND EMPLOYMENT
The Board's index of industrial production, which makes
allowance for usual seasonal movements, remained unchanged in August at 107 per cent of the 1923-1925 average.
Output of steel increased by more than the seasonal amount
and the higher level was maintained in the first three weeks
of September_ Production of automobiles was sharply reduced as plants were closed for inventory taking and for
mechanical changes in connection with the introduction of
new models. Output of nondurable manufactures increased
further in August, reflecting chiefly continued expansion in
activity at textile plants and shoe factories. At bituminous
coal mines output increased less than is usual at this season
and at anthracite mines production declined. Output of
petroleum showed an increase_
Factory employment rose further between the middle of
July and the middle of August by an amount larger than is
usual at this season. There were substantial increases in
working forces at establishments producing textiles and
wearing apparel and smaller increases in most other lines,
partly offset in the total by a decline in employment in the
automobile industry_ Factory payrolls increased.
Value of construction contracts, which had increased
sharply in July, declined somewhat in August, according to
the figures of the F_ W. Dodge Corporation. The value of
non-residential projects was smaller than in July but larger
than in other recent months. Residential building increased
considerably, reflecting a marked increase in contracts for
apartments, several of which were publicly-financed projects. Awards for single-family houses, which have accounted
for most of the increase in residential building during the
past year and a half, showed little change in August.
AGRICULTURE
Department of Agriculture crop estimates based on September 1 conditions were about the same as the estimates
made a month earlier, except for a sharp decline in prospects for cotton. Prospective output of leading crops, with
the exception of cotton and winter wheat, is considerably
a8
of September 26, 1986)
smaller than last year, but, in comparison with the drought
year 1934, it is larger, except for corn and potatoes.
DISTRIBUTION
Freight·car loadings of most classes of commodities
showed about the usual seasonal increase from July to
August. Shipments of grain, however, declined sharply and
the increase in total loadings was less than seasonal. Depart·
ment store sales increased by less than the usual amount
and the Board's seasonally adjusted index was 86 per cent
of the 1923·1925 average as compared with 91 per cent in
July and 87 per cent in June.
COMMODITY PRICES
Wholesale commodity prices showed little change between
the middle of August and the third week of September, fol·
lowing three months of advance. Prices of steel scrap and
chemicals and drugs conLinued to advance and there were
also increases in the prices of hides and nonferrous metals.
There was a seasonal decline in hog prices. Cotton, which
advanced in price early this month at the time of the official
crop report, declined afLer the middle of the month.
BANK CREDIT
Demand deposiLs of reporting member banks in leading
cities increased somewhat further in the four weeks ending
September 16, reflecting gold imports, Treasury expendi·
tures, and an increase in bank loans. Growth in loans was
principally in so-called "other" loans which include loans
to customers for agricultural, commercial, and industrial
purposes. These loans are now at the highest level since
early ill 1933. Loans to security dealers showed an increase,
as is usual, prior to flotation of the new issue of Treasury
bonds on September 15. A part of the new Treasury issue
was purchased by reporting banks, principally by drawing
upon their balances with the Reserve banks.
Largely as a consequence of payments to the Treasury,
excess reserves of member banks showed a decrease of
$280,000,000 in the week ending September 16. This decline
followed an increase of nearly $200,000,000 in the pre·
ceding three weeks, when the Treasury was reducing its
deposits with the Reserve banks. Since early in August there
has been a renewed inflow of gold and the country's monetary gold stock has increased by about $100,000,000 in the
past month.
@FedFRASER